Lesson 5 of 6

From policy rate to loan rate: pass-through, spreads and lags

Loan rates rarely move one for one with the policy rate. This lesson explains how a loan rate is built from a reference rate and a spread, how to measure pass-through, why it is weaker for households and small firms, why deposit rates and funding structure matter, and what the Philippines' tightening of 2022 to 2023 shows, set against estimates for 18 economies.

Published 15 October 2026